The metrics by which you measure the success of your hotel’s email marketing campaigns may be dependent upon many factors. However in most cases, the event that drives revenue serves as the primary focus for optimization. If your campaign goals specifically include driving additional revenue per guest, your conversion rate (or, the rate at which guests actually purchase when you ask them to) will be your primary indicator of success. Click-throughs can be a powerful second signal to measure. Understanding which tactic initially drove guests to respond to your emails and purchase can help you better evaluate the success of your email marketing investments.
Questions to Consider When Evaluating a Successful Email Marketing Campaign
Understanding your customer’s journey is critical to optimizing your email marketing campaign performance. While looking at opens and click-throughs will help you unlock more pieces of the conversion puzzle, there are also other factors you should consider.
Question: Am I reaching the right audience?
It’s easy to reach your whole guest database with generic blast emails, but this is most likely a waste of your marketing dollars. To see if you’ve done a good job targeting the right people, measure how many guests actually click through your emails.
Question: Am I reaching my guests at the right stage in their customer journey?
Figuring out the right time to send an email can also be tricky. A guest who has booked a stay in the future might not be ready to upgrade or book additional amenities until right before the trip. Similarly, a guest who has recently checked out might not be ready to re-book immediately.
Measuring the conversion rate of your emails, or those who click through and actually purchase, can help you determine when you’ve successfully delivered the right content at the right time.
Question: Do I need more targeting?
If guests don’t convert the first time they open an email from your hotel, there is an opportunity learn from this. You can get more specific with your segmenting, and reach them again with a more targeted offer. Do you know your guests, along with their preferences and interests?
Of all the people who actually purchased, what percentage purchased with one email versus multiple emails? This metric, your conversion ratio, is more for benchmarking purposes–you can use it to measure your own success over time. A lower percentage indicates that you should get more targeted with your email sends, to make sure you’re sending your guests emails that are highly relevant to them. If your percentage increases, it’s a sign that you’re getting better at delivering what your guests want when they want it.